It is 7 December 2020. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
In today's episode:
- Retail sales tax to enter into force on 1 January 2021
- Exemption from the obligation to separately declare receipts considered simplified invoices in SAF-T further extended
- The Council of Ministers approved the draft bill amending the Customs Law and certain other Acts
- The protocol amending the Double Tax Treaty between Malta and Poland
- Polish Sejm passed the Slim VAT package
- Polish-German agreement on cross-border workers
- The Ministry of Finance plans to introduce structured VAT invoices
Retail sales tax to enter into force on 1 January 2021
The Ministry of Finance confirmed that it does not intend to further delay the entry into force of the new retail sales tax. This means that the retail sales tax is to enter into force on 1 January 2021. The new tax will be due from retailers and cover revenue from retail sales. The tax base will be the surplus of revenues from retail sales over PLN 17m earned in a given month. The tax obligation shall arise when the seller's revenue in a given month exceeds the threshold of PLN 17m and apply to the excess amount, earned from that moment until the end of the month.
The retail sales tax rates will be as follows:
Exemption from the obligation to separately declare receipts considered simplified invoices in SAF-T further extended
Pursuant to the draft decree of the Ministry of Finance, Development Funds and Regional Policy, the period of exemption from the obligation to separately declare receipts considered simplified invoices in SAF-T, imposed on taxpayers using cash registers, will be further extended until 30 June 2021 (instead of 31 December 2020, as previously announced). The amendment is to support taxpayers facing difficulties presented by coronavirus pandemic.
The Council of Ministers approved the draft bill amending the Customs Law and certain other Acts
On 1 December 2020, the Council of Ministers approved the draft bill amending the Polish Customs Law. The key amendments included therein are: introduction of a single procedure for all fees and charges in imports, possibility of issuing PESEL numbers to foreigners employed in Poland, reimbursement of the fuel surcharge in the cases and on the terms provided for excise duty refund at the request of the entity entitled to such a refund, changes in keeping the register of customs guarantors and rules of making entries into the list of customs agents, consisting in waiving the obligation of being granted an administrative decision by the customs authority, provided that the conditions for making such an entry are met, assuming that the entry into the register/ list replaces the decision, along with the possibility to electronically submit information (notifications) required by law for gambling companies.
The protocol amending the Double Tax Treaty between Malta and Poland
On 1 December 2020, the Ministry of Finance announced that the protocol amending the Convention between Malta and the Republic of Poland for the avoidance of double taxation in terms of income taxes has been signed. The amendments thereto include, in particular, introduction of WHT on fees for technical services and inclusion of a new method of avoiding double taxation (the tax credit method). Moreover, the protocol brings changes to the rules for taxation of directors' remuneration and the scope of taxation of sale of real estate companies.
Polish Sejm passed the Slim VAT package
On 27 November 2020, the Lower House of the Polish Parliament passed an amendment to the VAT Act implementing the Slim VAT package. It provides for, inter alia, elimination of the obligation to obtain confirmation of receipt of a correcting invoice, extension of deadline for the export of goods to apply the zero percent rate on the by exporters from 2 to 6 months as well as using currency conversion rates for VAT purposes according to the rules applicable under the provisions on income tax, introduction of a 5-year period validity of the Binding Rate Information and introduction of an all-electronic billing system and supervision over the issued TAX FREE documents along with the VAT refunds obtained by travellers. Furthermore, the new act was supplemented by Sejm with provisions extending tax preferences for plug-in hybrid vehicles. The period of exemption from the obligation to pay excise duty on such cars will be extended until 31 December 2022. The act is now waiting for the President's signature.
Polish-German agreement on cross-border workers
On 3 December 2020, it was announced that Poland and Germany had concluded a mutual agreement on the principles of taxation of remote work performed by cross-border workers during the COVID-19 pandemic. Pursuant to the agreement, work performed at home (i.e. in the country of residence) by an employee for an employer from the other country may be considered as work performed in the country where the employee would have performed this work, had no measures been taken to counter the COVID-19 pandemic. This means that the pre-pandemic taxation rules will be maintained, despite the fact that the factual circumstances have changed. The agreement is temporary and shall cover the period between 11 March 2020 and December 2020, with a possibility of further extension.
The Ministry of Finance plans to introduce structured VAT invoices
On 3 December 2020, the draft bill amending Polish VAT Act and certain other acts was added to the list of legislative work and policies of the Council of Ministers. The bill provides for introduction of a solution commonly referred to as structured invoicing. A 'structured invoice' is a technical notion and refers to an e-invoice with structured machine-readable XML representation . In practice, this means that the information contained in invoices is recorded in line with a set standard and data categories. The bill is to be approved in Q1 2021.